Slovakia's rise to one of Europe's foremost automotive manufacturing hubs represents one of the most consequential industrial transformations in Central and Eastern Europe. With four major OEMs — Volkswagen, Stellantis, Kia, and Jaguar Land Rover — operating large-scale facilities, the country achieved a per-capita vehicle output ratio that is unmatched globally. This trajectory, initially celebrated as a landmark FDI success, has progressively generated a single-sector dependency that leaves the national economy acutely exposed to exogenous shocks and structural disruption.

Our analysis identifies a critical inflection point: the same industrial policy choices that propelled Slovakia's GDP growth and employment rates now represent its most significant macroeconomic vulnerability. The accelerating transition to electric vehicles, the global reshoring of supply chains, and the rise of autonomous mobility are fundamentally challenging the competitiveness of assembly-centric economies. Without a decisive strategic pivot toward higher value-added activities and diversified industrial output, Slovakia faces a protracted structural adjustment with substantial social and fiscal consequences.